HK Stock Market Move | Chinese brokerage stocks extend losses as unrealized gains from sci-tech investments shrink notably; Q3 performance divergence among listed brokerages may intensify.

Chinese brokerage stocks extend their declines. As of press time, China Securities Co., Ltd. (06066) fell 4.40% to HK$10.42; CMSC (06099) fell 3.94% to HK$12.45; Guotai Haitong (02611) fell 3.74% to HK$13.12; Guolian Minsheng (01456) fell 3.72% to HK$3.235. On the news front, listed brokerages are in the midst of densely disclosing their third-quarter reports. Several brokerages' non-bank teams have recently released forward-looking assessments: the year-on-year growth in net profit attributable to parent companies for listed brokerages in the first three quarters is still expected to remain in double digits, with strong certainty of high growth; however, affected by the decline in market trading activity and the stock market pullback in the third quarter, major brokerages expect the industry's single-quarter profit to decline by a range of 17% to 31% quarter-on-quarter. Shenwan Hongyuan Group released a research report stating that it expects performance divergence among listed brokerages to further intensify in the third quarter. Among them, sci-tech investment banking + investment has become a double-edged sword: in 3Q26, the STAR 50 Index recorded the largest single-quarter decline in history, and in 2Q26, unrealized gains from sci-tech investments shrank notably, dragging down the performance of brokerages with larger sci-tech exposure. Brokerages that seized the CXMT Corporation IPO opportunity and relied on investment banking underwriting and sponsorship + follow-on investment + direct investment achieved relatively good returns. In addition, support from international business for Q3 performance has a "counter-cyclical" nature.